Osun State has filed a fresh case at the Supreme Court against the Attorney-General of the Federation, Lateef Fagbemi (SAN), accusing the Federal Government of unlawfully withholding funds meant for its 30 local government councils since March 2025.
The new suit comes after the state withdrew an earlier case, which it reintroduced, saying the AGF ignored valid court rulings confirming the legitimacy of the elected council officials.
The state, represented by its Attorney-General and a legal team led by Mike Ozekhome (SAN) and Musibau Adetunbi (SAN), is seeking a court order to compel the Federal Government to release the withheld funds.
Osun described the continued withholding as “an unconstitutional and arbitrary seizure” of local government revenues.
Osun argued that the AGF’s directive in a March 26, 2025 letter, citing a “local government crisis,” was baseless.
They pointed out that judgments from the Federal High Court in November 2022 and the Court of Appeal in June 2025 had already settled the matter and nullified the 2022 polls conducted by the previous administration.
Among other reliefs, the state is asking the Supreme Court to declare that the AGF does not have the constitutional power to withhold local government funds and that his actions violate Section 287 of the 1999 Constitution (as amended).
Osun is also seeking a perpetual injunction to prevent any further seizures of council revenues.
In an affidavit, Olufemi Akande Ogundun, Permanent Secretary of the Ministry of Local Government and Chieftaincy Affairs, called the Federal Government’s actions “an affront to the rule of law.”
He stated that only the Supreme Court can conclusively resolve the constitutional issues, citing legal precedents such as A.G. Kano State v. A.G. Federation (2007) and RMAFC v. A.G. Rivers State (2023).
Osun also raised concerns about the Chief Judge’s decision to transfer a related case from the Federal High Court, Osogbo, to Abuja for hearing by a vacation judge, warning that conflicting judgments could arise if the matter is handled separately.
